Originally Posted by CuppaJoe
In the mid-'70s I worked in the "lost and stolen" credit card dept. of a large bank. They covered virtually all losses.
When I had some internet fraud on a credit card about 2004, that mega-bank also covered the entire $500 loss and were unable to remove the points for that $500 so I got the $25 gift card sooner.
Banks make soooooo much money, they can do this.
Yep. It's somewhat unsettling, but banks make so much money on credit cards that unless the amount involved in a particular incidence of fraud is absolutely staggering, they just write it off as a cost of doing business because that's cheaper than pursuing the fraud.
My Amex was compromised to the extent of about $3,000 a month ago. I gave them information about the intended shipping address of some of the fraudulent charges which I received from the customer service folks at a couple of the places where the charge failed to go through, but I doubt they pursued it.
Ultimately that gets passed on, perhaps some to merchants and some to people who don't pay their balance in full each month.